Urbanizing China #08

Module Summary

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Student Presentations

11.S945, MW9:30-11:00 Professor: Jinhua Zhao, TA: Liyan Xu1

Outline

• Module Summary

• Student Presentation

• Literature synthesis

• Informal Evaluation

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InspireInstall

Anchor

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Cases and Connections

• Urbanization Out of Sync

1 Preface • Is China an Outliner?• Fundamentals: Hukou and Migration

• Land Use and Public Finance Institutions • Quota Market in Chongqing and Chengdu: De-spatialize Land Transfer2 Land & Money • Brownfield in Beijing: How Cities Recycle Industrial Land?• Property Tax

• Managing Car Ownership• Urban Infrastructure • Dispersion of Urban Agglomeration through High Speed Rail

3 Hardware • Costs of Air Pollution: Human Health Damage• Progress in Energy Efficiency: Technology, Policy and Market• Financing Urban Access: Transportation, Urban Form and Land Grabbing• Untangling Complex Urban Issues through Emerging Big Data

• Drifting and getting stuck: Migrants in Chinese cities • Urbanization vs. Citizenization: Migrants in Wangjingxi Market• Spatial Justice in Affordable Housing Design in Ningbo4 Software• Preserving Beijing’s Spatial Tradition in Rapid Urban Development• Aging Society: Offering Care to the Elderly in the Confucius Society• Forging Greater Xi’an: New Regional Strategies

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Class 01 Multiple Interpretations

Class 02 Is China an Outlier?

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Class 03 Hukou

Class 04 Land and Finance

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Yuan Xiao is a doctoral candidate at DUSP, MIT. Her research interests include property rights theories and practices, urbanization, land markets as well as urban and regional economics. Yuan Xiao's dissertation studies the latest land policy innovation in China, the land quota markets which have de-spatialized land transfers and have important social and economic implications for Chinese urbanization. Prior to coming to MIT, she worked for three years with the World Bank Institute in Washington D.C., focusing on capacity building and training programs in the field of urban management and planning for

Yuan Xiaodeveloping countries. Yuan obtained her master's degree in Political Science from University of Toronto. She was awarded a Bachelor’s Degree in International Politics and a concurrent Bachelor’s Degree in Economics from Peking University, China.

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Xin Li is a visiting assistant professor in the Graduate School of Architecture, Planning, and Preservation at Columbia University. Her research explores crucial issues linking economic development, environmental protection, and technological innovatioin different institutional settings. Through comparative approach, Li is particularly interested in economic restructuring in rapidly deindustrializing regions, environmental and social problems accompanying fast urbanization, and land conflicts arising from rampant urban expansion. Her current work primarily focuses on China, where she examineshow brownfield issues in Chinese cities were and currently are managed during industrial sites redevelopment process. She investigates these issues banalyzing the progress of brownfield legislation, property rights of former industrial land,

Xin LIenvironmental governance related to land contamination, brownfield financing mechanisms, and power balances among stakeholders. Dr. Li has a PhD degree in Urban and Regional Studies from MIT; a Master¹s degree in Urban Planning from the Universitof Michigan at Ann Arbor; and a B.A. in Economics froRenmin University of China.

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Yu-Hung Hong is the founder and Executive Director of Land Governance Laboratory where he studies the use of land tools to facilitate open and inclusive decision making processes for land resource allocation in developing countries. He is also a Lecturer of Urban Planning and Finance at Massachusetts Institute of Technology (MIT) and Visiting Fellow at the Lincoln Institute of Land Policy. He earned his Ph.D. in Urban Development and Masters in City Planning from the Department of Urban Studies and Planning at MIT. His research focuses on property rights and obligations, land readjustment/sharing, and local public finance. Specifically, he is interested in investigating how governments can capture land value

Yu-Hung increments created by public investment and community collaboration for financing local

Honginfrastructure and durable shelters for the poor.

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Class 05 Land Quota Market

Class 06 Brownfields

Class 07 Property Tax

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Class 07 Recap

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Property Tax and Public Leasehold System

Question 1

“The people in China do not own land, why should we pay a property tax on land to the government?”

Courtesy of Yu-Hung Hong. Used with permission.

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New Property Tax and Public Leasehold System

Question 2

“Developers had already paid the leasing fees when leasing the land use rights, why do they need to pay additional tax on land?”

Courtesy of Yu-Hung Hong. Used with permission.

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New Property Tax and Public Leasehold System

Question 3

“If the government imposes a property tax on land, lease revenues will decrease due to the discounting of future property tax liabilities of holding land. So, the net fiscal effect of creating a new tax instrument could be zero. Why should the government go through this trouble?”

Courtesy of Yu-Hung Hong. Used with permission.

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Class 07 Recap

• Public

• Developer

• Local government

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Class 07 Recap

• Mapping

• Clear Theory vs. Messy Practice

• Political

• Sense of tax: right and responsibility

• Farmers vs. Urban middle income

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Proposed Industrial Land Location in Beijing (2020)

Source:  Beijing  Master  Plan  (2004-­‐  2020)  

City plans removed due to copyright restrictions.

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Brownfield

• Environment

• Land developement

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BEFORE AFTER

URBANFRINGE

High-­‐rise  apartment  buildings  

RURAL  AREA Sca$ered  farmhouses

Reclaimed  farmland

3.    Use  Quota  for  Urban  Expansion

Courtesy of Yuan Xiao. Used with permission.

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New Spatial Logics

Location - Proximity- Continuity- Density

Time

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State and Market

• Phenomenon:  crafting of formal market institutions

• Process:  State making a market?

• Result: More market or more state intervention?

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Origin of Land Finance

A conversation between a communist prime minister (left) and a capitalist developer (right) in 1981

Prime Minister Zhao Ziyang (赵紫阳): “we lack capital for city developments.”

Dr. Huo Yingdong (Henry Fok, 霍英东) the capitalist in Hong Kong: “how come you lack capital if you have land?”

Prime Minister Zhao Ziyang: “We can’t charge people for using land. That’s capitalism.”

Dr. Huo Yingdong: “Well, even capitalism has got some merits.”

Courtesy of Liyan Xu. Used with permission.

Source: Henry Fok’s Memoir 22

Distance from city center

Land

Ren

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b b’

To  the  city  government

To  the  land  owners  (villagers)

To  other  villagers  (through  land-­‐quota  exchange)

To  government-­‐run  developers

Spli@ng  the  Cake

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A Dualistic System

Urban Rural

Danwei Collective

Invisible Wall

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Cover of Chan, Kam Wing. Cities with Invisible Walls: Reinterpreting Urbanization in Post-1949 China. Oxford, 1994, and political cartoon about hukou from China Daily removed due to copyright restrictions.

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Mao’s Era Present

Peasants

Urban Area Rural Area

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Image by MIT OpenCourseWare.

Courtesy of Liyan Xu. Used with permission. 27

Courtesy of Liyan Xu. Used with permission.28

Internal  Complexities

Source:  Own  calculation  based  on  the  UN  World  Urbanization  Perspective  2012,  World  Bank  PPP  per  capita  data  2012.

Courtesy of Liyan Xu. Used with permission.

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Unbalanced  Urbanization

Photograph courtesy of kenner116 and sterlingcollege on Flickr. Under CC-BY.

Courtesy of Liyan Xu. Used with permission.

• Despite similar urbanization level, rural Vermont(right) is different from rural Guizhou(left).

• In the developed countries, the countryside and the city imply different styles of life; however in developing countries, they mean different qualities of life.

• The two differ in terms of infrastructure accessibility, consumption level, educational quality, or even life expectancy.

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Discussion 2

Multiple InterpretationsBuilt environment

Administration

Economy

Welfare

Lifestyle

Political

Cultural

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Discussion 3

Tensions

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Beijing Smog Urban vs. Region

Land Quota Real Estate Development

Urban Finance Energy EfficiencyHousing market

Urban Agglomeration Affordable housingProperty Tax

Cultural Heritage ConnectionsCar Love Affair

Infrastructure Spatial EquityHigh Speed Rail

Big Data BrownfieldsAging Society

Migrant workersUrban Form Governance

ConnectionsConnections

Market

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Connections

Discussion 7

What difference does rapid urbanization make?

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Discussion 8

Who are the players?Who influence whom?

Who can change the status quo?

Behavioral Motivations35

Cases and Connections

• Urbanization Out of Sync

1 Preface • Is China an Outliner?• Fundamentals: Hukou and Migration

• Land Use and Public Finance Institutions • Quota Market in Chongqing and Chengdu: De-spatialize Land Transfer2 Land & Money • Brownfield in Beijing: How Cities Recycle Industrial Land?• Property Tax

• Managing Car Ownership• Urban Infrastructure • Dispersion of Urban Agglomeration through High Speed Rail

3 Hardware • Costs of Air Pollution: Human Health Damage• Progress in Energy Efficiency: Technology, Policy and Market• Financing Urban Access: Transportation, Urban Form and Land Grabbing• Untangling Complex Urban Issues through Emerging Big Data

• Drifting and getting stuck: Migrants in Chinese cities • Urbanization vs. Citizenization: Migrants in Wangjingxi Market• Spatial Justice in Affordable Housing Design in Ningbo4 Software• Preserving Beijing’s Spatial Tradition in Rapid Urban Development• Aging Society: Offering Care to the Elderly in the Confucius Society• Forging Greater Xi’an: New Regional Strategies

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Hardware• Managing Car Ownership

• Urban Infrastructure

• Dispersion of Urban Agglomeration through High Speed Rail

• Costs of Air Pollution: Human Health Damage

• Progress in Energy Efficiency: Technology, Policy and Market

• Financing Urban Access: Transportation, Urban Form and Land Grabbing

• Untangling Complex Urban Issues through Emerging Big Data

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Software• Drifting and getting stuck: Migrants in Chinese cities

• Urbanization vs. Citizenization: Migrants in Wangjingxi Market

• Spatial Justice in Affordable Housing Design in Ningbo

• Preserving Beijing’s Spatial Tradition in Rapid Urban Development

• Aging Society: Offering Care to the Elderly in the Confucius Society

• Forging Greater Xi’an: New Regional Strategies

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Idea presentation• Sep 30

• Brief• Not Graded• Comments

• Oct 02 and following classes

• Project idea or literature synthesis idea

• What, Why, How• Visual

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Design of the course

• Top-down and bottom up

• Cases vs. theories

• Content and format

• Findings and research methods

• Students, Guest, Liyan and Jinhua

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Dialogue

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Programming of a Class

• Guests present the case (15 min)

• Dialogue (25 min): students and Jinhua “interview” the guest

• Guests reflect on the discussion (10 min)

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On the idea notes

• inspire you to think

• connect to other topics

• personal experience

• change of your prior notions

• What if you were the presenter today

• research design

• Ideas for team project

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Idea Notes

• Prior notes posting

• Comment on others

• Threading

• Title: short, meaningful, unique

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Office Hours• Jinhua: Tue 3pm-4:30pm

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Literature Synthesis• Purpose

– The purpose of a literature synthesis is to ADD value.

– It is NOT simply a catalog of papers you have read.

• Difference from a project– Data: existing literature

• Deliverable– written report: 3000 words;

– presentation: 15 min including Q&A

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Literature Synthesis (Components)• Problem formulation

– overview of the subject, issue or theory– clarify the objectives of the literature review

• Literature search– google scholar, web of science, ScienceDirect, MIT Vera, google, TRB online

• Data categorization and evaluation– Four typical structures of organization

• Chronological (By trend)

• Thematic• Methodological

• Opinion: support, again, neutral, alternative perspectives

– Critical appraisal of papers • Contribution: method, data, theory

• Impact on practice• Limitations

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Literature Synthesis (Components)• Data analysis, interpretation and synthesis

– Similarity of papers: identify trends and patterns

– Difference between papers: resolve conflicts

– Relationships between papers

– New perspectives / new interpretations

– Gaps in the existing literature

– Point the way forward for further research

• Conclusions

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Literature Synthesis• Bibliography

– Please provide full reference information, and follow the APA style: http://library.concordia.ca/help/howto/apa.php

• How to start– Read other papers' literature review sections and follow good styles.

– Identify a few core papers (e.g., 7-15) and supplemental sources (e.g. 20~50)

– Read the core papers carefully and summarize each separately as the starting point

– Then follow section 2 components.

– Read the tips provided in the separate document

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APA style. I’ll provide two

Please use mendeley or zotero

Team project deliverables

Project Proposal Project Report (Draft and Final)

Project Title Project TitleHighlights HighlightsAbstract (250 words) Abstract (250 words)Key words Key words1. Introduction 1. Introduction

1.Context / Significance 1.Context / Significance2.Objectives / Research questions 2.Objectives / Research questions

2. Literature Review 2. Literature Review3. Methodology 3. Methodology

1.Data 1.Data2.Models / theories / methods 2.Models / theories / methods

4. Expected results 4. Analysis results and interpretation5. Expected impact and policy implications 5. Discussion6. References 1.Summary of research findings

2. Impact and Policy Implications3.Limitation and future research

6. References

Please use mendeley or zotero for references. Follow the for references. Follow the APA style. I’ll provide two examples papers for you to learn about the formatting. examples papers for you to learn about the formatting.

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Informal Evaluation

• Good

• Bad

• Anything else

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Urbanizing ChinaA reflective dialogue

11.S945, MW9:30-11:00 Professor: Jinhua Zhao, TA: Liyan Xu52

MIT OpenCourseWarehttp://ocw.mit.edu

11.S945 Urbanizing China: A Reflective DialogueFall 2013

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